HAVANA, Jan 11 (IPS) – Félix Morffi supports the energy needs of his home with the help of the sun, in some cases through handcrafted solutions that make the most of an alternative source that is abundant in Cuba, but still used very little.
With two tanks, glass, aluminum sheets, as well as cinderblocks, sand and cement, the 86-year-old retiree created, in 2006, a solar heater that meets his household needs.
“You build it today and tomorrow you have hot water; anyone can do it, and if they have a bit of advice, all the better,” said the retired mid-level machine and tool repair technician who lives in the municipality of Regla, one of the 15 that make up Havana.
He also designed and made a dryer that uses the heat of the sun to dehydrate fruits, spices and tubers, which he assembled mostly with recycled products such as pieces of wood, nylon, acrylic and aluminum sheets.
On the roof of his house, 16 solar panels imported in 2019 provide five kilowatts of power (kWp) and help run his small automotive repair shop where he works on vehicles for state-owned companies and private individuals, an independent enterprise that he set up next to his house.
In addition to covering his household needs, he provides the surplus electricity to the national grid, the National Electric Power System (SEN).
Morffi said more training is needed among personnel involved in several processes, and he cited delays of more than a year between the signing of the contract with Unión Eléctrica and the beginning of payments for the energy surpluses provided to the SEN, as well as “inconsistency with respect to the assembly” of the equipment.
Although Cuba has a national policy on renewable energy sources, “there is still a lot of ignorance and very little desire to do things, and do them well. Awareness-raising is needed,” he argued.
The innovator believes that despite the economic conditions, with a little ingenuity people can take advantage of the natural elements, because “the sun shines for everyone; the wind is there and costs you nothing, but your wealth is in your brain.”
In his backyard, a small solar panel keeps the water flowing from a well for his barnyard fowl and an artificial pond holding a variety of ornamental fish as well as tilapia for family consumption.
The construction of a small biodigester, about four cubic meters in size, is also at an advanced stage on his land, aimed at using methane gas from the decomposition of animal manure and crop waste, for cooking.
Morffi, who manages these activities with the backing of several family members, also plans to import three small wind turbines of 0.5 kWp each and a new batch of 4 kWp solar PV panels.
His vision is to turn his house into a space for the production and promotion of renewable energies in Cuba.
To this end, he has the support of the non-governmental Cuban Society for the Promotion of Renewable Energy Sources and Respect for the Environment (Cubasolar), of which Morffi has been a member since 2004.
Since 2014, Cuba has had a Policy for the Development of Renewable Energy Sources and their Efficient Use. And in 2019, Decree Law 345 established regulations to increase the share of renewables in electricity generation and steadily decrease the proportion represented by fossil fuels.
According to studies, this archipelago of more than 110,800 square kilometers with an annual average of 330 sunny days receives an average solar radiation of more than five kilowatts per square meter per day, considered to be a high level that provides enormous potential in terms of energy.
The solar energy program appears to be the most advanced and with the best opportunities for growth. Over the last decade, several solar parks have been built, providing more than 75 percent of the renewable energy produced locally.
But clean sources account for just five percent of the island’s electricity generation, an outlook that the authorities want to radically transform, setting an ambitious goal of 37 percent by 2030.
Roma community protest in the Serbian city of Nis after dozens of families in a settlement in the city had their electricity cut off. Credit: Opre Roma Srbija
by Ed Holt (bratislava)
Inter Press Service
BRATISLAVA, Jan 05 (IPS) – As European households brace for energy shortages this winter and leaders draw up support packages to help people heat homes in the coming months, experts fear that the largest minority on the continent, the Roma, will be left behind.
Many of the 12 million Roma in Europe have a low standard of living, and even before the energy crisis, energy poverty was rife among their communities.
Roma leaders and rights organisations say the current crisis has only deepened the problem and are calling for governments to ensure that one of the continent’s most vulnerable groups gets the help they need this winter and beyond.
“EU leaders and policymakers must ensure that energy policies already agreed, or any agreed in future, must be tailored and implemented in such a way that the most vulnerable, including the Roma, can access and benefit from them,” Zeljko Jovanovic, director of the Open Society Roma Initiatives Office at the Open Society Foundations (OSF), told IPS.
Roma living in Europe are among the most discriminated and disadvantaged groups on the continent. In many countries, significant numbers live in segregated settlements where living conditions are often poor, and extreme poverty is widespread.
Energy poverty is also common. It is estimated that at least 10% of the roughly 6 million Roma living in EU countries have no access to electricity at all.
Roma protest after electricity supplies to 24 families in the ‘12 February’ Roma settlement in the southern Serbian city of Nis was cut off over unpaid bills. There are calls for European countries to take into consideration the plight of the Roma during the energy crisis. Credit: Opre Roma Srbija
Meanwhile, where utilities are available, many struggle to afford them.
Rising energy prices this year have exacerbated the problem. But while governments have rolled out help in the form of one-off payments and other support for families and businesses to pay energy bills, this aid is often not filtering through to Roma despite the minority being among those most in need, say rights activists.
Unemployment in Roma communities is often high, with only one in four Roma aged 16 years or older reporting being employed, and many earn money working in the grey or black economies. But because of this, they often struggle with accessing state support schemes. This is especially true for measures approved to provide financial aid during the energy crisis.
“Even before the energy crisis, there was a problem with energy poverty in Europe, and for the Roma, this was even more so because so many were not in the formal system.
“Measures for the energy crisis are made for those in the formal system. Many Roma are not in that system – they are unemployed, or not formally registered, or earning money and paying into the social welfare system – so they cannot access those measures,” explained Jovanovic.
Roma NGOs working in some countries say they have already seen these problems.
In Romania, which has a Roma population of 1.85 million according to the Council of Europe, a programme to help the vulnerable with energy payments has been launched.
But Alin Banu, Community Organiser at the Aresel civic initiative, told IPS some Roma are unable to access it precisely because “they work in the grey or black economy and don’t have the right documentation of social insurance payments, wages etc.”.
Meanwhile, even those who are eligible for help are often being denied it, he claimed. He said that some municipalities had put conditions on receiving help to pay energy bills – for example, evidence of historical tax debt, or car ownership, makes an individual ineligible for the help.
The group says this is illegal.
“We have solved this problem in some cases, but most Roma will not complain about this because often they simply will not know it is illegal,” Balu said.
There are also concerns that other measures already adopted will actually make things worse for Roma.
Last year European leaders agreed on a non-binding goal for EU countries to reduce overall electricity demand by at least 10% by 31 March 2023, and a mandatory reduction of electricity consumption by 5% for at least 10% of high-demand hours each week.
Jovanovic fears that politicians’ first steps to save on energy consumption could involve simply cutting off power supplies to those not formally connected to the energy grid.
“Countries’ reductions in energy demand might come from cutting energy to those who do not have formal access to it, like the Roma,” said Jovanovic.
Nicu Dumitru, a Community Organiser at Arsesel, agreed – “the Roma would be the first to be cut off in that case,” he told IPS – but said that even if that does not happen, many Roma are already struggling with soaring energy costs.
Information collected by his group suggests that a fifth of all Roma households have had their electricity cut off since the start of the crisis because they cannot afford to pay. They are then connecting informally to the grid – usually through one person in their community who has a connection and who then charges high prices for others for use of that power – often borrowing money to do so, and worsening their already precarious financial situation.
There are an estimated over 400,000 people informally connected to the power grid in Romania, many of them Roma.
“The situation is getting critical for Roma,” Dumitru said.
Meanwhile, Roma activists in other countries are worried that politicians will use the energy crisis as an excuse to ignore long-term problems with energy poverty among the Roma or even as a justification to allow Roma settlements to be cut off from supplies.
In May this year, electricity supplies to 24 families in the ’12 February’ Roma settlement in the southern Serbian city of Nis were cut off over unpaid bills. The families claim this debt pre-dates their time living there, but the local power distributor demanded proof of house ownership from the families before reconnection.
People in many Roma settlements often lack such documents as the process for obtaining them is costly and difficult for many to navigate without expert legal help, and none of these families was able to provide the required proof.
It was only after both local and nationwide protests by members of the community themselves and negotiations between the families, who were represented by the Opre Roma Serbia rights group, local authorities, and the local distributor Elektrodistribucija Nis, that in December, limited supplies of electricity were restored to the families involved.
Jelena Reljic of Opre Roma Serbia said she was pleased those affected could now access electricity again but warned “the situation in this settlement is an example of a much wider systemic problem” which politicians are not doing enough to solve.
“The last cut off in this settlement was because of historic debt, but the problems with electricity have been going on for a decade. Politicians are relying on being able to cut Roma settlements off from electricity during the energy crisis without too much public outrage or resistance. Around 99% of the reaction we have seen to the problem in this settlement has been of the type ‘oh, no one should be getting energy free during this crisis, we pay, so why shouldn’t they?’” she told IPS.
“Politicians are using the energy crisis to cover up the fact that they have never dealt with the problem of energy poverty for years and years,” she added.
The OSF’s Jovanovic wants European policymakers to review their proposed help during the crisis, including not just the approved reductions in energy demand but plans for energy price caps and a solidarity levy on the profits of businesses active in the oil, natural gas, coal, and refinery sectors.
He said the 5% reduction must not lead to electricity cuts for those already in energy poverty and that public revenues from the energy cap and solidarity levy – estimated at €140bn within the EU – should be redistributed along principles that are both morally and macroeconomically justified.
He has been involved in high-level EU committee meetings on energy crisis support policies, but, he told IPS, at those meetings, there seemed to be “little idea of the perspective of Roma and other vulnerable groups and how they would cope in the crisis”.
Now he and other activists are trying to arrange further talks with EU and national policymakers to urge them to address shortcomings in current policies affecting vulnerable groups, including Roma.
Aerial view of the 5000 square meter roof full of solar panels, in one of the pavilions of La Rural, the busiest fair and exhibition center in Buenos Aires. It is the largest private solar park in the capital of Argentina and required an investment of almost one million dollars. CREDIT: Courtesy of La Rural
by Daniel Gutman (buenos aires)
Inter Press Service
BUENOS AIRES, Dec 23 (IPS) – With large projects held back by the economic crisis and lack of infrastructure, Argentina seems to be looking at an alternative path towards a more sustainable energy mix involving small renewable energy projects, promoted by environmentally aware industries, businesses and private users.
The initiatives are aimed at covering their own consumption, sometimes with the addition of so-called distributed generation, in which user-generators who have a surplus of electricity can inject it into the national power grid and thus generate a tariff credit.
Distributed generation initiatives have just surpassed 1,000 projects already in operation, according to the latest official data.
At the same time, this month saw the inauguration of the largest private solar energy park in the city of Buenos Aires, an initiative of the Argentine Rural Society (SRA), the traditional business chamber of agricultural producers.
The park was installed in the exhibition center the SRA owns in the capital of this South American country, to supply part of its consumption with an investment of almost one million dollars and more than 1,000 solar panels.
“Small private renewable energy projects and distributed generation will be the ones to increase installed capacity in the coming years, because the electricity transmission and distribution system sets strong limits on large projects,” Mariela Beljansky, a specialist in energy and climate change issues, told IPS.
Beljansky, who was national director of Electricity Generation until early 2022, added: “Otherwise there will be no way to meet the growth targets for renewable sources set by Argentina, as part of its climate change mitigation commitments under the Paris Agreement.”
Argentina presented its National Climate Change Adaptation and Mitigation Plan, which includes 250 measures to be implemented by 2030, at the 27th Conference of the Parties (COP27) on climate change held by the United Nations in the Egyptian city of Sharm El Sheikh in November.
The National Secretariat for Climate Change estimated the total value of the plan’s implementation at 185.5 billion dollars, four times more than the debt Argentina incurred in 2018 with the International Monetary Fund (IMF), which has generated a sharp deterioration of the economy since then.
According to the data included in the plan, the energy sector is the largest generator of greenhouse gases (GHG) in the country, generating 51 percent of emissions.
Although renewable sources (with wind projects in first place and solar in second place) reached a record in October, supplying 17.8 percent of total electricity demand, the energy mix continues to be sustained basically by oil, natural gas and large hydroelectric projects.
Furthermore, the country has not decided to slow down the development of fossil fuels. The main reason is that it has large reserves of shale natural gas in the Vaca Muerta field in the south of the country, which has been attracting the interest of international investors for years. The climate change plan sets the goal of using natural gas as a transition fuel to replace oil as much as possible.
The plan also includes the objectives of developing a variety of renewable energy sources (wind, solar, small hydro, biogas and biomass) and also distributed generation, “directly at the points of consumption” and connected to the public power grid, at the residential and commercial levels.
Large renewable projects experienced strong growth between 2016 and 2019, on the back of an official plan that guaranteed the purchase of electricity at attractive prices for investors, but since then there have been virtually no new initiatives.
This truck functions as a mobile health center, travelling through towns in Patagonia, in southern Argentina. The roof of the vehicle is covered with solar panels that provide electricity to the four mobile consulting rooms and diagnostic imaging equipment. CREDIT: Courtesy of Utorak
Consumption subsidies
“In Argentina’s current situation, where there is practically no financing, and there are restrictions on importing equipment, high inflation and economic uncertainty, it is difficult to think about large renewable energy parks, and small projects become more attractive,” Marcelo Alvarez, a member of the board of the Argentine Renewable Energy Chamber (Cader), told IPS.
Alvarez pointed out that what conspires against small private and distributed generation projects are the subsidies that the Argentine government has been providing for years to energy consumption, including those families with high purchasing power that do not need them.
“Artificially cheap electricity rates and the scarcity of credit discourage the growth of renewables,” Alvarez said.
“The proof of this is that more than half of the distributed generation projects in operation are in the province of Cordoba (in the center of the country), where electricity prices are three times more expensive than in Buenos Aires and there is a special line of credit from the local bank (Bancor, which grants ‘eco-sustainable loans’) for renewable equipment,” he said.
Indeed, according to data from the Energy Secretariat, there are 1,051 user undertakings that generate their own electricity and inject their surplus into the grid and 573 of them are in the province of Cordoba.
View of photovoltaic panels in a private neighborhood in Pilar, some 50 kilometers from Buenos Aires. Solar panels have become part of the landscape in the suburbs of Argentina’s capital city. CREDIT: Courtesy of Utorak
Private ventures
On Dec. 15, the Rural Society inaugurated the largest private solar park in Buenos Aires, in the 42,000 square meter covered area where the country’s most important fairs and exhibitions are held. The investment reportedly amounted to almost one million dollars.
“We have 42,000 square meters of roofs in our pavilions. It is a very important flat surface for the placement of solar panels, so we had been thinking about it for several years. We had done a pilot project in 2019, but then everything was delayed by the pandemic, which forced us to close the venue,” Claudio Dowdall, general manager of La Rural, told IPS.
“At this stage we used 5,000 square meters of roofs, on which we placed 1,136 photovoltaic panels, with a total power of 619 kW. This is equivalent to the average consumption of 210 family homes and, for us, it is between 30 and 40 percent of the electricity we use,” he added.
Andrés Badino, founder of Utorak, a company that has been dedicated to renewable energy for families and companies for more than five years, confirms that consultations and demand are growing in the sector.
“People’s interest has been growing because of increased environmental awareness and, also, because of what can be saved on electricity bills for residential users and for educational institutions and healthcare centers as well,” Badino said.
“Argentina has a national industry for the production of solar thermal tanks, but not for the manufacture of panels, inverters or batteries, despite the fact that the country has one of the largest reserves in the world, the main component. But we are confident that international prices will go down and drive demand,” he said.
TORONTO, Canada, Dec 23 (IPS) – A year that started with Russia’s invasion of Ukraine and is ending with famine in Africa, while still spreading death and misery through an enduring pandemic and a deteriorating climate crisis — 2022 has been an apocalyptic warning of the frailty of our planet and the woeful shortcomings of humankind.
Farhana Haque RahmanBeyond the stark statistics of millions of people displaced by war and natural disasters, it has been a 12 months that tragically highlighted our global interconnections and how a confluence of events and trends can bring another year of record levels of hunger.
Tens of thousands of soldiers and civilians (numbers given by the UN and involved parties vary enormously) have been killed in Ukraine since Russia launched war on February 24. More than 7.8 million Ukrainians have fled the country. Billions of dollars have been spent on armaments.
But the impact of the war has been felt worldwide, driving up prices of basic commodities such as oil, gas, grain, sunflower oil and fertilisers. Somalia, now in the grip of the worst drought to hit the Horn of Africa in 40 years, used to import 90 per cent of its wheat from Russia and Ukraine.
Commodities have been weaponised. Countries slipped back into recession, just as they were slowly recovering from the economic distress of Covid-19 lockdowns. A deepening relationship between sanctioned Russia and an energy- hungry China exacerbated existing tensions with the US over Taiwan. The result? China broke off climate cooperation efforts with the US in the run-up to the COP27 climate conference hosted by Egypt in November with 200 countries and 35,000 people attending.
Against the backdrop of devastating floods in Pakistan and West Africa, and with 2022 on its way to becoming one of the five hottest years on record, agriculture and food security joined the COP27 agenda. Talks ran into extra time, as they tend to, and countries of the global South emerged with the landmark creation of a special fund paid by wealthier countries to address the Loss and Damage caused by climate change in the most vulnerable nations.
“After 30 contentious years, delayed tactics by wealthy countries, a renewed spirit of solidarity, empathy and cooperation prevailed, resulting in the historic establishment of a dedicated fund,” said Yamide Dagnet, director for climate justice at the Open Society Foundations, reflecting a sense of hard fought victory among developing countries.
Still unresolved however is which countries will give money and to whom. China in particular seems uneasy over which category it belongs to. However COP27 joined its 26 forerunners since 1995 in not reaching a binding agreement on cutting fossil fuel burning which has continued to rise globally, except for a brief pandemic dip. For this, many branded it a failure. “Humanity has a choice: cooperate or perish. It is either a Climate Solidarity Pact – or a Collective Suicide Pact,” UN Secretary-General Antonio Guterres told the opening plenary session. By the end, many felt the conference had concluded with the latter. Rather than falling, the latest estimates from the Global Carbon Project show that total worldwide CO2 emissions in 2022 have reached near-record levels.
Victims of devastating floods, heatwaves and forest fires, and severe drought in Central Sahel and East Africa surely needed no confirmation from the final decision text of COP27 which recognises “the fundamental priority of safeguarding food security and ending hunger” and the vulnerability of food production to climate change.
In this respect, COP27 recognised the importance of nature-based solutions – a theme driven by the International Union for Conservation of Nature (IUCN) in ringing alarm bells on the degraded soil, water sources and eco-systems caused by intensive agriculture with overuse of fertilisers and pesticides. According to FAO, more than 25 percent of arable soils worldwide are degraded, and the equivalent of a football pitch of soil is eroded every five seconds. The planet’s bio-diversity is being devastated as a result. As highlighted by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) in stressing the vital connections between Nature and people, a landmark report in July found that 50,000 wild species provide food, osmetics, shelter, clothing, medicine and inspiration. Many face extinction. As international agencies and NGOs (and media outlets) jostled and competed for funding to deal with the fallout from wars and climate emergencies, the International Fund for Agricultural Development (IFAD) which is active in the Sahel cautioned that only 1.7 per cent of all climate finance reaches small-scale producers in developing countries and as little as 8% of overseas aid goes to projects focused primarily on gender equality. Women’s empowerment has been made a major focus of ASAP+, IFAD’s new climate change financing mechanism.
Women and girls are paying “an unacceptably high price” among communities hit by severe drought in the Horn of Africa, according to the UN Population Fund (UNFPA). It launched a $113.7 million appeal to scale-up life-saving reproductive health and protection services, including establishment of mobile and static clinics in displacement sites.
Also overshadowed by wars and pandemics in 2022 were marginalised communities lacking a voice, suffering diseases such as leprosy or exploited in the form of child labour.
Yohei Sasakawa, WHO Goodwill Ambassador for Leprosy Elimination, says many issues have been sidelined because of the Covid-19 pandemic. Society has the knowledge and means to stop and cure leprosy, he says in the ‘Don’t Forget Leprosy’ campaign by the Sasakawa Leprosy Initiative.
“When people are still being discriminated against even after being cured, society has a disease. If we can cure society of this disease—discrimination—it would be truly epoch-making,” he told IPS.
A similar message was delivered by Nobel Laureate Kailash Satyarthi who told the 5th Global Conference on the Elimination of Child Labour that a mere $53 billion per annum – equivalent to 10 days of military spending – would ensure all children in all countries benefit from social protection. International Labour Organisation and UNICEF statistics from 2020 show at least 160 million children are involved in child labour, a surge of 8.4 million in four years. Children denied education became a burning issue in Afghanistan in March when the Taliban declared that girls would be banned from secondary education. The UN said 1.1 million girls were affected. The late-night reversal of a decision by Taliban authorities to allow girls from grades 7 to 12 to return to school was met with outrage and distress, inside and outside Afghanistan. Denial of human rights to girls and women has fuelled the desire of many to get out of Afghanistan and seek a better life elsewhere, adding to the millions around the world forced to flee their homes because of conflict, repression or disaster. The Ukraine conflict has displaced more than 14 million people, about a third of the population.
A UN Office on Drugs and Crime report on trafficking warns that refugees from Ukraine are at risk of including sexual exploitation, forced labour, illegal adoption and surrogacy, forced begging and forced criminality.
As they come over border crossings into Poland, refugees – including victims of rape – are greeted with posters and flyers carrying warnings about jail terms for breaking local abortion laws, images of miscarried foetuses, and a quote from Mother Theresa saying: “Abortion is the greatest threat to peace”.
UNDP, which is assisting the Ukraine government in getting access to public services for IDPs, says in its 2022 report, Turning the tide on internal displacement, that earlier and increased support to development is an essential condition for emerging from crisis in a sustainable way.
“More efforts are needed to end the marginalization of internally displaced people, who must be able to exercise their full rights as citizens including through access to vital services such as health care, education, social protection and job opportunities” said Achim Steiner, UNDP Administrator.
Nearly one million Rohingya refugees languishing in refugee camps in Bangladesh after being driven out of Myanmar in waves since 2016 would surely agree.
Asif Saleh, executive director of BRAC, said to be the world’s largest NGO and founded by Sir Fazle after the independence of Bangladesh in 1972, says work needs to “shift towards a development-like approach from a very short-term umanitarian crisis-focused approach”. But the only solution for the Rohingya refugees is their sustainable and voluntary repatriation to Myanmar. As 2022 closes, that unfortunately looks highly unlikely as the military junta that seized power in 2021 fights ethnic armed organisations on multiple fronts.
There was one seismic milestone event that happened in late 2022 although no one is quite sure exactly where and when. The few people to witness it were not aware either – not that it prevented the UN from declaring it a special day. The birth of the 8 billionth person was celebrated on November 15. The world’s population has doubled from 4 billion in 1974 and UN projections suggest we will be supporting about 9.7 billion people in 2050. Global population is forecast to peak at about 10.4 billion in the 2080s.
Inger Andersen, executive director of the UN environment programme, sent a message to the baby, and the rest of the world, as countries meet in Montreal for the COP15 biodiversity conference this month.
“We’ve just welcomed the 8 billionth member of the human race on this planet. That’s a wonderful birth of a baby, of course. But we need to understand that the more people there are, the more we put the Earth under heavy pressure,” she said.
Farhana Haque Rahman is Senior Vice President of IPS Inter Press Service and Executive Director IPS Noram; she served as the elected Director General of IPS from 2015-2019. A journalist and communications expert, she is a former senior official of the United Nations Food and Agriculture Organization and the International Fund for Agricultural Development.
A riverside park in Boa Vista, which would probably disappear with the construction of the Bem Querer hydroelectric plant, 120 kilometers downstream on the Branco River. The projection is that the reservoir would flood part of the capital of the state of Roraima, in the extreme north of Brazil. CREDIT: Mario Osava/IPS
by Mario Osava (boa vista, brazil)
Inter Press Service
BOA VISTA, Brazil, Dec 21 (IPS) – “Roraima did not have a Caribbean character; now it does, because of its growing relations with Venezuela and Guyana,” said Haroldo Amoras, a professor of economics at the Federal University of this state in the extreme north of Brazil.
The oil that the U.S. company ExxonMobil discovered off the coast of Guyana since 2015 generates wealth that will cross borders and extend to Roraima, already linked to Venezuela by energy and migration issues, predicted the economist, the former secretary of planning in the local government from 2004 to 2014.
Roraima, Brazil’s northernmost state, which forms part of the Amazon rainforest, is unique for sharing a border with these two South American countries on the Caribbean Sea and because 19 percent of its 224,300 square kilometers of territory is covered by grasslands, in contrast to the image of the lush green Amazon jungle.
It is also the only one of Brazil’s 26 states not connected to the national power grid, SIN, which provides electricity shared by almost the entire country. This energy isolation means the power supply has been unstable and has caused uncertainty in the search for solutions in the face of sometimes clashing interests.
From 2001 to 2019 it relied on imported electricity from Venezuela, from the Guri hydroelectric plant, whose decline led to frequent blackouts until the suspension of the contract two years before it was scheduled to end.
The closure of this source of electricity forced the state to accelerate the operation of old and new diesel, natural gas and biomass thermoelectric power plants. It also helped fuel the proliferation of solar power plants and the debate on cleaner and less expensive alternatives.
Alfredo Cruz would lose the restaurant and home he inherited from his great-grandfather, who registered the property in 1912. The Bem Querer reservoir would lead to the relocation of many riverside dwellers and would even flood part of the capital of the northern Brazilian state of Roraima, Boa Vista, 120 kilometers upriver. CREDIT: Mario Osava/IPS
The objectives range from influencing sectoral policies and stimulating renewable sources in the local market to monitoring government decisions for isolated systems, such as the one in Roraima, as well as proposing measures to reduce the costs and environmental damage of such systems.
“Not everyone (in the Forum) is opposed to the construction of the Bem Querer hydroelectric plant, but there is a consensus that there is a lack of information to evaluate its benefits for society and whether they justify the huge investment in the project,” biologist Ciro Campos, an ISA analyst and one of the Forum’s coordinators, told IPS.
Bem Querer, a power plant with the capacity to generate 650 megawatts, three times the demand of Roraima, is the solution advocated by the central government to guarantee a local power supply while providing the surplus to the rest of the country.
For this reason, the project is presented as inseparable from the transmission line between Manaus, capital of the state of Amazonas with a population of 2.2 million, and Boa Vista, the capital of Roraima, population 437,000. The line involves 721 kilometers of cables that would connect Roraima to the national grid.
Indigenous people in the northern Brazilian state of Roraima are striving to install solar plants in their villages and are studying how to take advantage of the winds in their territories, which are considered favorable for wind energy. Their aim is to prevent the construction of Bem Querer and other hydroelectric plants that would affect indigenous lands, according to Edinho Macuxi, coordinator of the Indigenous Council of Roraima. CREDIT: Mario Osava/IPS
“In its design, Bem Querer looks towards Manaus, not Roraima,” Campos complained, ruling out a necessary link between the power plant and the transmission line. “We could connect to the SIN, but with a safe and autonomous model, not dependent on the national system” and subject to negative effects for the environment and development, he argued.
Hydroelectric damage
The plant would dam the Branco River, the state’s main water source, to form a 519-square-kilometer reservoir, according to the governmental Energy Research Company (EPE). It would even flood part of Boa Vista, some 120 kilometers upstream.
The hydropower plant would both meet the goal of covering the state’s entire demand for electricity and abolish the use of fossil fuels, diesel and natural gas, which account for 79 percent of the energy consumed in the state, according to the distribution company, Roraima Energia.
But it would have severe environmental and social impacts. “It would make the riparian forests disappear,” which are almost unique in the extensive savannah area, locally called “lavrado,” of grasses and sparse trees, said Reinaldo Imbrozio, a forestry engineer with the National Institute of Amazonian Research (Inpa).
A view of the Branco River, five kilometers above where its waters would be dammed if the controversial Bem Querer hydroelectric plant is built, which would generate enough electricity to meet the entire demand of the Brazilian state of Roraima as well as a surplus for export, but would have environmental and social impacts magnified by the flatness of the basin that requires a very large reservoir. CREDIT: Mario Osava/IPS
In addition to the flooding of parts of Boa Vista, the flooding of the Branco and Cauamé rivers, which surround the city, will directly affect nine indigenous territories and will have an indirect impact on others, complained Edinho Macuxi, general coordinator of the Indigenous Council of Roraima (CIR), which represents 465 communities of 10 native peoples.
The CIR, together with ISA and the ICS, built two solar energy projects in the villages and carried out studies on the wind potential, already recognized in the indigenous territories of northern Roraima.
“The main objective of our initiatives is to prove to the central government that we don’t need Bem Querer or other hydroelectric projects…that represent less land and more confusion, more energy and less food for us,” he stressed to IPS at CIR headquarters.
“We will have to leave, said the engineers who were here for the studies of the river,” said Alfredo Cruz, owner of a restaurant on the banks of the Branco River, about five kilometers upstream from the site chosen for the dam. At that spot visitors can swim in the dry season, when the water level in the river is low.
Economics Professor Haroldo Amoras says the state of Roraima is becoming more Caribbean, because its economy is increasingly linked to its neighboring countries to the north of Brazil, Guyana and Venezuela, which, in addition to being importers, are the route to the Caribbean for Roraima’s agricultural and agro-industrial products. CREDIT: Mario Osava/IPS
The rapids there show the slight slope of the rocky riverbed. It is a flat river, without waterfalls, which means a larger reservoir. The heavy flow would be used to generate electricity in a run-of-river power plant.
Cruz inherited his restaurant and house from his great-grandfather. The title to the land dates back to 1912, he said. But they will be left under water if the hydroelectric plant is built, even though they are now located several meters above the normal level of the river, he lamented.
Riverside dwellers, fishermen and indigenous people will suffer the effects, Imbozio told IPS. The property of large landowners and people who own mansions will also be flooded, but they have been guaranteed good compensation, he added.
What the Forum’s Campos proposes is the promotion of renewable sources, without giving up diesel and natural gas thermoelectric plants for the time being, but reducing their share in the mix in the long term, and ruling out the Bem Querer dam, which he said is too costly and harmful.
Energy issues will influence the future of Roraima, according to Professor Amoras. The most environmentally viable hydroelectric plants, such as one suggested on the Cotingo River, in the northeast of the state, with a high water fall, including a canyon, are banned because they are located in indigenous territory, he said.
The participation of civil society is important for the Brazilian state of Roraima to make progress towards sustainable energy alternatives that can reduce diesel consumption, offer energy security and avoid the impacts of hydroelectric dams, according to Ciro Campos, an analyst with the non-governmental Socio-environmental Institute. CREDIT: Mario Osava/IPS
Oil wealth, route to the Caribbean
In the neighboring countries, oil wealth opens a market for Brazilian exports and, through their ports, access to the Caribbean. The Guyanese economy will grow 48 percent this year, according to the World Bank.
Roraima’s exports have grown significantly in recent years, although they reached just a few tens of millions of dollars last year.
Guyana’s small population of 790,000, the unpaved road connecting it to Roraima and the fact that the language there is English make doing business with Guyana difficult, but relations are expanding thanks to oil money.
This will pave the way to the Caribbean Community (CARICOM), whose scale does not attract transnational corporations, but will interest Roraima companies, said Fabio Martinez, deputy secretary of planning in the Roraima state government.
Venezuela expanded its imports from Roraima, of local products or from other parts of Brazil, because U.S. embargoes restricted trade via ports and thus favored sales across the land border, he said.
“The liberalization of trade with the United States and Colombia will now affect our exports, but a recovery of the Venezuelan economy and the rise of oil can compensate for the losses,” Martinez said.
Roraima is a new agricultural frontier in Brazil and its soybean production is growing rapidly. But “we want to export products with added value, to develop agribusiness,” said Martinez.
That will require more energy, which in Roraima is subsidized, costing consumers in the rest of Brazil two billion reais (380 million dollars) a year. If the state is connected to the national grid through the transmission line from Manaus, there will be “more availability, but electricity will become more expensive in Roraima,” he warned.
CANDELARIA, Cuba, Dec 20 (IPS) – Mayra Rojas is one of a small but growing number of people in Cuba benefiting from the production of biogas, a renewable energy source still little used in a country highly dependent on fossil fuels.
The biodigester in the back of her house in the rural community of Carambola, Candelaria municipality in the province of Artemisa, 80 kilometers west of Havana, brings Rojas the benefits of not using firewood and electricity for cooking, with the consequent reduction in electric bills and cooking time.
It was built in 2011 with the help of her husband Edegni Puche, who worked in the installation of the gas pipes and other aspects.
Rojas and Puche, who raise pigs and grow fruits and vegetables on their small family farm, were advised by specialists from the Cuban Society for the Promotion of Renewable Energy Sources and Respect for the Environment (Cubasolar) and the Movement of Biogas Users (MUB).
Rojas also received materials from the municipal government and the local pig company to build the small-scale Chinese-type fixed-dome biodigester of about six cubic meters in size.
She estimates that the total cost of the project ranged between 500 and 600 dollars at the exchange rate at the time.
Construction costs depend on the size, type and thickness of the material, as well as the characteristics of the site.
However, experts estimate that the average minimum cost for the construction of a small-scale biodigester – which more than covers the cooking needs of a household – currently stands at around 1,000 dollars in a country with an average monthly salary equivalent to 160 dollars at the official exchange rate.
Rojas says that “before, when we cleaned the pens, the manure, urine and waste from the pigs’ food piled up in the open air, in a corner of the yard. It stank and there were a lot of flies.”
The organic matter is now decomposed anaerobically by bacteria, but in a closed, non-polluting environment that provides methane gas as an energy resource, instead of releasing it into the atmosphere.
Thanks to the alternative energy source Rojas can also keep her nails painted and her hair clean for longer.
It also helped her husband and two young children become more involved in household chores, cleaning the yard and taking care of the animals on the family farm, “and created greater awareness of environmental care.”
In addition, biogas technology provides biol and biosol – liquid effluent and sludge, respectively – which are ideal for fertilizing and restoring soils, “as well as watering and keeping plants green,” says Rojas, who has a lush garden where she grows varieties of exotic orchids.
Her biodigester has also proven useful to the community, because when there are blackouts due to tropical cyclones that frequently affect the island, “neighbors have come to heat up water and cook their food,” she adds.
There are an estimated 5,000 biodigesters in Cuba, with the potential to expand the network to 20,000 units, at least the small-scale ones, according to conservative estimates by experts.
More than 90 percent of Cuba’s electricity comes from burning fossil fuels in aging thermoelectric plants and diesel and fuel oil engines, in a nation where a significant percentage of the 3.9 million homes use electric power as the main energy source for cooking and heating water for bathing.
Don’t Gas Africa protest during COP27. Credit: Don’t Gas Africa
by Paul Virgo (rome)
Inter Press Service
ROME, Dec 14 (IPS) – One of the knock-on effects of Moscow’s invasion of Ukraine is that European countries have embarked on a ‘dash for gas’ to find alternatives to Russian energy supplies.
A flurry of deals has ensued with several African States being enticed by the prospect of lucrative energy contracts.
A new report, however, has warned that helping Europe continue its addiction to imported fossil fuels risks having devastating long-term effects for African societies.
The first is that feeding the West’s fossil-fuel habit will accelerate the climate crisis, which is already having disproportionately severe effects on African communities.
Drought, wildfires, flooding, disease and pest invasions will increase in their severity and frequency with this ‘new scramble for Africa’, pushing developmental goals further out of reach.
The report, which was presented at COP27, also argues that, even if the planet were not overheating because of human-caused emissions, further facilitating the ‘dash for gas’ would not be wise.
Many African states looking to expand gas production will be building the infrastructure from scratch, so projects will take years, perhaps decades, to become operative, it says.
With renewable energy sources increasingly competitive, the projects are unlikely to benefit from the current favourable prices, so there is a risk they will not be able to operate for their entire intended lifespan, saddling African States with debts, forgone revenues and huge clean-up costs.
“African countries’ plight to help satisfy Europe’s dash for gas is a dangerous and short-sighted vision fuelled by a capitalist utopian dream that has no place in Africa’s energy future,” Dean Bhebhe, the Co-Facilitator of Don’t Gas Africa, a network of African-led civil society organisations that produced the report, told IPS .
“Investment in fossil gas production will lock Africa into another cycle of poverty, inequality and exploitation while creating a firewall for Africa to leapfrog towards renewable energy”.
The reports points out that fossil-fuel infrastructure projects do not have a good track record on combatting energy poverty and advancing development on the continent.
It gives the example of Nigeria, saying that, despite decades of fossil-fuel production, only 55% of the population had access to electricity there in 2019.
It says that jobs in fossil-fuel industries in Africa tend to be short-term, precarious, and concentrated in construction, while green jobs are longer term and have the potential to bring benefits to the entire continent, rather than just a handful of nations with fossil-fuel reserves.
Furthermore, the pollution and environmental degradation caused by expanding gas production would endanger the lives and livelihoods of many, the report says, arguing fossil-fuel infrastructure in Africa has been shown to force communities from their land and disrupt key fisheries, crops and biodiversity.
Among the examples it gives is that of the East African Crude Oil Pipeline (EACOP), which will run from Uganda to Tanzania and is set to force around 14,000 households across the two countries to move.
The report also argues that allowing high rates of foreign ownership of Africa’s energy system would pull wealth out of the continent at the expense of African citizens.
It says that any investment in fossil fuels displaces investment from clean, affordable renewable energy systems that can bring immediate benefits to African communities.
It says, for example, that the potential for wind power in Africa is almost 180,000 terawatt hours per year, enough to satisfy the entire continent’s current electricity demands 250 times over.
“As the UN Secretary General António Guterres said this year, investing in new fossil fuel production and power plants is moral and economic madness” Bhebhe said.
“New gas production would not come on-line in time to address Europe’s fossil-fuel energy crisis and would saddle the African continent with stranded assets”.
The report says that the arguments used by some African leaders and elites to justify expansion in gas production on the basis of climate justice, on the grounds that now it’s ‘own turn’ to exploit fossil fuels to deliver prosperity, are bogus.
The conclusion is that, rather than replicating the fossil-fuelled development pathways of the past,
Africa should opt for a rapid deployment of renewables to stimulate economies, create inclusive jobs, boost energy access, free up government revenues for the provision of public goods, and improve the health and wellbeing of human and non-human communities.
“We need an end to fossil-fuel-induced energy Apartheid in Africa which has left 600 million Africans without access to modern clean renewable energy,”Bhebhe said.
“Scaling up cost-effective, clean, decentralized, renewable energy is the fastest and best way to end energy exclusion and meet the needs of Africa’s people. Policymakers in Africa need to reject the dumping of dirty, dangerous and obsolete fossil-fuel and nuclear energy systems into Africa.
“Africa must not become a dumping ground for obsolete technologies that continue to pollute and impoverish”.
Freddie Daley, the lead author of the report, echoed those sentiments.
“The idea that fossil gas will bring prosperity and opportunities to Africans is a tired and overused fallacy, promulgated by those that stand to benefit the most: multinational fossil fuel firms and the elite politicians that aid and abet them,” said Daley, a research associate at the University of Sussex in the UK.
“Africa has the opportunity to chart a different development path, paved with clean, distributed, and cheap energy systems, funded by African governments and those of wealthy nations that did the most to create this crisis. We cannot let Africa get locked-in to fossil fuel production because it will lock-out Africans from affordable energy, a thriving natural world, and clean air.”
Aerial view of the Municipal Theater of Boa Vista and its parking lot covered by solar panels, near the center of a city of wide avenues, empty spaces, abundant solar energy and high quality of life compared to other cities in Brazil’s Amazon region. In the background is seen the Branco River, which could be dammed 120 kilometers downstream for the construction of a hydroelectric plant that would flood part of the capital of the state of Roraima. CREDIT: Boa Vista city government
by Mario Osava (boa vista, brazil)
Inter Press Service
BOA VISTA, Brazil, Dec 13 (IPS) – Solar energy is booming in Roraima, a state in the far north of Brazil, to the benefit of indigenous people and children in its capital, Boa Vista, and helping to provide a stable energy supply to the entire populace, who suffer frequent electricity shortages and blackouts.
The local government of Boa Vista, a city of 437,000 people, installed seven solar power plants that bring annual savings of around 960,000 dollars.
“We have used these savings to invest in health, education and social action, which is the priority of the city government because we are ‘the capital of early childhood’,” said Thiago Amorim, municipal secretary of Public Services and Environment.
Solar panels have mushroomed on the roofs of public buildings and parking lots around the city. The largest unit was built on the outskirts of Boa Vista – a 15,000-panel power plant with an installed capacity of 5,000 kilowatts.
In the city, the parking lot of the Municipal Theater, a bus terminal, a market and the mayor’s office itself stand out, covered with panels. There are also 74 bus stops with a few panels, but many were damaged when parts were stolen, Amorim told IPS in an interview in his office.
In total, the city had a solar power generation capacity of 6700 KW at the end of 2020, equivalent to the consumption of 9000 local households. It also promotes energy efficiency in the areas under municipal management.
“Eighty percent of the city is now lit up by LED bulbs, which are more efficient. The goal is to reach 100 percent in 2023,” said the municipal secretary.
The solar energy park about 10 kilometers from downtown Boa Vista has 15,000 panels with an output of 5,000 KW. It is one of the seven electricity generation units built by the city government to save some 960,000 dollars a year in energy and thus increase the social spending that makes Boa Vista “the capital of early childhood”. The plant is located on the plains of northeastern Roraima, an extensive savannah of 42,706 square kilometers, which stands in contrast with the image of the Amazon jungle. CREDIT: Boa Vista city government
The mayor’s office, during the administration of Teresa Surita (2013-2020), was a pioneer in the installation of solar power plants and also in comprehensive care for children from pregnancy to adolescence, for youngsters in the public educational system.
The city’s Welcoming Family program provides coordinated health, education, social assistance and communication services for mothers and children, from pregnancy through the first six years of the children’s lives. The day-care centers are called Mother Houses.
In recent years, students in the local municipal elementary schools have performed above the national average, coming in fifth place in student testing among Brazil’s 27 state capitals.
This was an especially outstanding achievement because the influx of Venezuelan migrants more than doubled the number of students in Boa Vista schools in the last decade.
Despite this, the quality of teaching was not affected, according to the indicators of the Education Ministry’s Basic Education Evaluation System.
A “little Amazon jungle” in the center of the city of Boa Vista with giant animal sculptures is the main children’s park of the three dozen in the city, with animal playground toys and structures. The playgrounds in the capital of Roraima, a state in the extreme north of Brazil, aim to educate children about the Amazon rainforest. CREDIT: Mario Osava/IPS
The results of the local early childhood policy have been recognized by several national and international specialized entities, including the United Nations Children’s Fund, which awarded it the Unicef Seal of Approval in 2016 and 2020.
More visible than the solar panels are the 30 playgrounds of varying sizes scattered around the city, in some cases featuring large playground equipment and structures in the shape of national wild animals, such as crocodiles and jaguars. They are called “selvinhas” (little jungles).
The use of solar power has spread to other sectors of life in Roraima, a state with only 650,000 inhabitants, despite its large area of 223,644 square kilometers, twice the size of Honduras, for example.
In May, there were 705 solar plants in homes, businesses and private companies, in addition to public buildings, in the state, with a total installed capacity of 15,955 KW (just under one percent of the region’s total).
In Roraima there are solar plants in the courthouses in four cities, in an aim to cut energy costs through a program called Lumen.
The secretary of Public Services and Environment of Boa Vista, Thiago Amorim, stands next to a map of the city which shows the areas already illuminated by energy-efficient LED bulbs. They now light up 80 percent of the city, which stands out for its solar energy generation and for programs that prioritize children, coordinating and combining educational, health and social action policies. CREDIT: Mario Osava/IPS
The Federal University of Roraima (UFRR) is also building a 908-panel plant, to be inaugurated by March 2023, with the capacity to generate 20 percent of the electricity consumed on its three campuses.
“The main objective is to save energy costs, and the goal is to expand to cover 100 percent of consumption. But it will also be useful for electrical engineering studies,” Emanuel Tishcer, UFRR’s head of infrastructure, told IPS.
The training of specialists in renewable sources, research into more efficient and cheaper panels, the comparison of technologies and innovations all become more accessible with the availability of an operating solar power plant, which serves the university’s electrical energy laboratory.
Edinho Macuxi, general coordinator of the Indigenous Council of Roraima (CIR), the largest organization of native peoples in the state, said “the great objective (of solar energy) is to prove that Roraima and Brazil do not need new hydroelectric plants.”
The Bem Querer (Portuguese for “good will”) plant on the Branco River, Roraima’s main river, “will have direct impacts on nine indigenous territories” and will also affect other nearby indigenous areas if it is built, as the central government intends, he told IPS.
That is why the CIR is involved in three projects – two solar energy and a wind energy study – in territories assigned to different indigenous ethnic groups, he said.
A view of the Branco River, some five kilometers upstream of the point where the Brazilian government plans to build the Bem Querer hydroelectric power plant. Because the river has little gradient on the central plains of the northern state of Roraima, the reservoir would flood an extensive area, including part of the capital Boa Vista, which has 436,000 inhabitants. This has triggered heavy opposition to the project, by the local indigenous population as well. CREDIT: Mario Osava/IPS
The government’s hydroelectric plans, which currently prioritize Bem Querer, but include other uses of local rivers, have sparked a renewed debate on energy alternatives in Roraima, which has an installed electricity capacity of only 300 megawatts, since it has almost no industry.
From 2001 to 2019, Roraima relied on electricity from neighboring Venezuela, generated by the Guri hydroelectric plant in eastern Venezuela, the deterioration of which caused a growing shortage over the last decade, until the supply completely ran out in 2019, two years before the end of the contract.
Diesel thermoelectric plants had to be reactivated and new plants had to be built, including one using natural gas transported by truck from the Amazon jungle municipality of Silves, some 1,000 kilometers away, in order to guarantee a steady supply of electricity that the people of Roraima did not have until then.
It is costly electricity, but its subsidized price is one of the lowest in Brazil. The subsidy drives up the cost of electric power in the rest of the country. That is why there is nationwide pressure for the construction of a 715-kilometer transmission line between Manaus, capital of the state of Amazonas, also in the north, and Boa Vista.
With this transmission line, Roraima will cease to be the only Brazilian state outside the national grid, and local advocates believe it will be indispensable for a secure supply of electricity, a long-desired goal.
The three members of the board of the Roraima Renewable Energy Forum, Conceição Escobar (L), Ciro Campos and Rosilene Maia (R), which discusses with the local society the energy alternatives that would make it possible to avoid the construction of the Bem Querer hydroelectric plant and the environmental and social impacts of the reservoir. CREDIT: Mario Osava/IPS
To discuss this and other alternatives, a group of stakeholders created the Roraima Alternative Energies Forum in September 2019, to promote dialogue between all sectors, in search of “the strategic construction of solutions to make the use of renewable energies viable in the state.”
“Our focus is energy security. The Forum is focused on photovoltaic sources and distributed generation. But it seeks a variety of renewable energies, including biomass,” said Conceição Escobar, one of the Forum’s coordinators and president of the Brazilian Association of Electrical Engineers in Roraima.
“There is an opportunity for everyone to be involved in the discussion. The construction of transmission lines and hydroelectric plants takes a long time, we have perhaps ten years to develop alternatives,” she told IPS.
“I am against Bem Querer, but the government of Roraima supports it. The Forum listens to all parties, it does not want to impose solutions. We want to study the feasibility of combined sources, with solar, biomass and wind, and encourage the use of garbage,” said biologist Rosilene Maia, who also forms part of the three-member board of the Forum.
Opinion by Jomo Kwame Sundaram (kuala lumpur, malaysia)
Inter Press Service
KUALA LUMPUR, Malaysia, Dec 13 (IPS) – Calls for more government regulation and intervention are common during crises. But once the crises subside, pressures to reform quickly evaporate and the government is told to withdraw. New financial fads and opportunities are then touted, instead of long needed reforms.
Global financial crisis
The 2007-2009 global financial crisis (GFC) began in the US housing market. Collateralized debt obligations (CDOs), credit default swaps (CDSs) and other related contracts, many quite ‘novel’, spread the risk worldwide, far beyond US mortgage markets.
Jomo Kwame Sundaram
Transnational financial ‘neural-like’ networks ensured vulnerability quickly spread to other economies and sectors, despite government efforts to limit contagion. As these were only partially successful, deleveraging – reducing the debt level by hastily selling assets – became inevitable, with all its dire consequences.
The GFC also exposed massive resource misallocations due to financial liberalization with minimal regulation of supposedly efficient markets. With growing arbitrage of interest rate differentials, achieving balanced equilibria has become impossible except in mainstream economic models.
Financialization has meant much greater debt and risk exposure as well as vulnerability for many households and firms, e.g., due to ‘term’ (duration) and currency ‘mismatches’, resulting in greater overall financial system fragility.
This has worsened global imbalances, reflected in larger trade and current account deficits and surpluses. In unfavourable circumstances, exposure of firms and households to risky assets and liabilities has been enough to trigger defaults.
Bold fiscal efforts succeeded in inducing modest economic recoveries before they were nipped in the bud soon after the ‘green shoots of recovery’ appeared. Instead, the US Fed initiated ‘unconventional’ monetary policies, offering easy credit with ‘quantitative easing’.
Currencies in flux
The seemingly coordinated rise of various, apparently unconnected asset prices cannot be explained by conventional economics. Thus, speculation in commodity, currency and stock markets has been grudgingly acknowledged as worsening the GFC.
The exchange rates of many currencies have also come under greater pressure as residents borrowed in low interest rate currencies such as the Japanese yen. In turn, they have typically bought financial assets promising higher returns.
Thus, higher interest rates attract capital inflows, raising most domestic asset prices. Exchange rate movements are supposed to reflect comparative national economic strengths, but rarely do so. But conventional monetary responses worsen, rather than mitigate, contractionary tendencies.
Globalization of trade and finance has generated contradictory pressures. All countries are under pressure to generate trade or current account surpluses. But this, of course, is impossible as not all economies can run surpluses simultaneously.
Many try to do so by devaluing their currencies or cutting costs by other means. But only the US can use its ‘exorbitant privilege’ to maintain both budgetary and current account deficits by simply issuing Treasury bonds.
Currency markets can also undermine such efforts by enabling arbitrage on interest rate differentials. International imbalances have worsened, as seen in larger current account deficits and surpluses.
Contrary to mainstream economics, currency speculation does not equilibrate national, let alone international markets. It does not reflect economic fundamentals, ensuring exchange rate volatility, to damaging effect.
Commodity speculation
Thanks to currency mismatches, many companies and households face greater risk. Exchange rate fluctuations, in turn, exacerbate price volatility and its harmful consequences, which vary with circumstances.
Changes in ‘fundamentals’ no longer explain commodity price volatility. Meanwhile, more commodity speculation has resulted in greater price volatility and higher prices for food, oil, metals and other raw materials.
These prices have been driven by much more speculation, often involving indexed funds trading in real assets. The resulting price volatility especially affects everyone, as food consumers, and developing countries’ agricultural producers.
Sharp increases in commodity prices since mid-2007 were largely driven by speculation, mainly involving indexed funds. With the Great Recession following the GFC, most commodity producers in developing countries faced difficulties.
Since then, nearly all commodity prices fell from the mid-2010s as the world economic slowdown showed no sign of abating until economic sanctions in 2022 pushed up food, energy, fertilizer and other prices once again.
Besides hurting export revenues, lower commodity prices and even greater volatility have accelerated depreciation of earlier investments in equipment and infrastructure following the commodity price spikes.
Integrated solutions needed
The uneven financial system meltdown following the GFC raised expectations that ‘finance-as-usual’ would never return. But lasting solutions to threats, such as currency and commodity speculation, require international cooperation and regulation.
Meanwhile, goods and financial markets have become more interconnected. Thus, a truly multilateral and cooperative approach has to be found in the complex interconnections involving international trade and finance.
In this asymmetrically interdependent world, policy reforms are urgently needed. All countries need to be able to pursue appropriate countercyclical macroeconomic policies. Also, small economies should be able to achieve exchange rate stability at affordably low cost.
Although prompt actions were undertaken in response to the GFC, the world economy experienced a protracted slowdown, the ‘Great Recession’. Myopic policymakers in most developed economies focus on perceived national risks, ignoring international ones, especially those affecting developing countries.
Contrary to widespread popular presumption, the Bretton Woods multilateral monetary and financial arrangements did not include a regulatory regime. Nor has such a regime emerged since, even after US President Nixon unilaterally ended the Bretton Woods system in 1971.
With the gagged voice of developing countries in international financial institutions and markets, the United Nations must lead, as it did in the mid-1940s.
It is the only world institution which could legitimately develop a better alternative. Thankfully, the UN Charter assigns it responsibility to lead efforts to do so.
Opinion by Armida Salsiah Alisjahbana (bangkok, thailand)
Inter Press Service
BANGKOK, Thailand, Nov 29 (IPS) – The recent climate talks in Egypt have left us with a sobering reality: The window for maintaining global warming to 1.5 degrees is closing fast and what is on the table currently is insufficient to avert some of the worst potential effects of climate change. The Nationally Determined Contribution targets of Asian and Pacific countries will result in a 16 per centincrease in greenhouse gas emissions by 2030 from the 2010 levels.
Armida Salsiah Alisjahbana
The Sharm-el Sheikh Implementation Plan and the package of decisions taken at COP27 are a reaffirmation of actions that could deliver the net-zero resilient world our countries aspire to. The historic decision to establish a Loss and Damage Fund is an important step towards climate justice and building trust among countries.
But they are not enough to help us arrive at a better future without, what the UN Secretary General calls, a “giant leap on climate ambition”. Carbon neutrality needs to at the heart of national development strategies and reflected in public and private investment decisions. And it needs to cascade down to the sustainable pathways in each sector of the economy.
Accelerate energy transition
At the Economic and Social Commission for Asia and the Pacific (ESCAP), we are working with regional and national stakeholders on these transformational pathways. Moving away from the brown economy is imperative, not only because emissions are rising but also because dependence on fossil fuels has left economies struggling with price volatility and energy insecurity.
A clear road map is the needed springboard for an inclusive and just energy transition. We have been working with countries to develop scenarios for such a shift through National Roadmaps, demonstrating that a different energy future is possible and viable with the political will and sincere commitment to action of the public and private sectors.
The changeover to renewables also requires concurrent improvements in grid infrastructure, especially cross-border grids. The Regional Road Map on Power System Connectivity provides us the platform to work with member States toward an interconnected grid, including through the development of the necessary regulatory frameworks for to integrate power systems and mobilize investments in grid infrastructure. The future of energy security will be determined by the ability to develop green grids and trade renewable-generated electricity across our borders.
Green the rides
The move to net-zero carbon will not be complete without greening the transport sector. In Asia and the Pacific transport is primarily powered by fossil fuels and as a result accounted for 24 per cent of total carbon emissions by 2018.
Energy efficiency improvements and using more electric vehicles are the most effective measures to reduce carbon emissions by as much as 60 per cent in 2050 compared to 2005 levels. The Regional Action Programme for Sustainable Transport Development allows us to work with countries to implement and cooperate on priorities for low-carbon transport, including electric mobility. Our work with the Framework Agreement on Facilitation of Cross-border Paperless Trade also is helping to make commerce more efficient and climate-smart, a critical element for the transition in the energy and transport sectors.
Adapting to a riskier future
Even with mitigation measures in place, our economy and people will not be safe without a holistic risk management system. And it needs to be one that prevents communities from being blindsided by cascading climate disasters.
We are working with partners to deepen the understanding of such cascading risks and to help develop preparedness strategies for this new reality, such as the implementation of the ASEAN Regional Plan of Action for Adaptation to Drought.
Make finance available where it matters the most
Finance and investment are uniquely placed to propel the transitions needed. The past five years have seen thematic bonds in our region grow tenfold. Private finance is slowly aligning with climate needs. The new Loss and Damage Fund and its operation present new hopes for financing the most vulnerable. However, climate finance is not happening at the speed and scale needed. It needs to be accessible to developing economies in times of need.
Innovative financing instruments need to be developed and scaled up, from debt-for-climate swaps to SDG bonds, some of which ESCAP is helping to develop in the Pacific and in Cambodia. Growing momentum in the business sector will need to be sustained. The Asia-Pacific Green Deal for Business by the ESCAP Sustainable Business Network (ESBN) is important progress. We are also working with the High-level Climate Champions to bring climate-aligned investment opportunities closer to private financiers.
Lock in higher ambition and accelerate implementation
Climate actions in Asia and the Pacific matter for global success and well-being. The past two years has been a grim reminder that conflicts in one continent create hunger in another, and that emissions somewhere push sea levels higher everywhere. Never has our prosperity been more dependent on collective actions and cooperation.
Our countries are taking note. Member States meeting at the seventh session of the Committee on Environment and Development, which opens today (29 November) are seeking consensus on the regional cooperation needed and priorities for climate action such as oceans, ecosystem and air pollution. We hope that the momentum begun at COP27 and the Committee will be continued at the seventy-ninth session of the Commission as it will hone in on the accelerators for climate action.
In this era of heightened risks and shared prosperity, only regional, multilateral solidarity and genuine ambition that match with the new climate reality unfolding around us — along with bold climate action — are the only way to secure a future where the countries of Asia and the Pacific can prosper.
Armida Salsiah Alisjahbana is an Under-Secretary-General of the United Nations and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP)
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